Skip to main content

Questions tagged [macroeconomics]

Macroeconomics is a branch of economics dealing with the aggregate economy as a whole, rather than individual markets.

Filter by
Sorted by
Tagged with
1 vote
0 answers
31 views

What is the mainstream economic response/interpretation of double burden, or the problem with unwaged reproductive labor?

I have recently done some readings into unwaged reproductive labor (the labor done in the household, primarily by women, which facilitates the household), and the arguments provided support the idea ...
22333444455555556668888's user avatar
3 votes
1 answer
84 views

Marginal and Average Cost in the Romer Model of Endogenous Growth

On page 124 of David Romer's Advanced Macroeconomics (5th Ed), he mentioned that for the Romer model, Because firms producing final output face constant costs for each input and the production ...
Tan2525's user avatar
  • 35
2 votes
1 answer
142 views

Resources for a Deep Dive into the New Keynesian / DSGE models

I would like to deep dive into new Keynesian models and DSGE models. Do you know comprehensive resources that cover both the mathematical and economic requirements?
Maurizio Marinaro's user avatar
2 votes
1 answer
102 views

Differences of two discount factors

In game theory at the undergraduate level, the discount factor is denoted as $\delta \in [0,1]$. On the other hand, in macroeconomics at the graduate level, the notation $e^{-\rho t}$ is used($t$ is ...
Yoji Yamamoto's user avatar
0 votes
0 answers
22 views

About the Phillips curve

We know that the Phillips curve takes into account demand shocks, but it's totally susceptible to supply shocks. Are there other types of curves/representations of the unemployment-inflation ...
Ion Padilla Méndez's user avatar
2 votes
2 answers
116 views

What is the name of the principle "GDP=Production=Income=Expenditure"?

Wikipedia says GDP can be determined in three ways, all of which should, theoretically, give the same result. They are the production (or output or value added) approach, the income approach, and the ...
user46190's user avatar
0 votes
0 answers
47 views

Vertical LM Curve

What causes a vertical LM curve? A vertical LM curve seems counterintuitive to me because plotting the LM curve requires us to examine the effects of a change in Y (output/income). But for vertical LM ...
Anu's user avatar
  • 13
2 votes
1 answer
230 views

why does consumption not have a positive multiplier?

My tutor said that only $I$, $G$, $X-M$ in AD can include a multiplier and that consumption does not create a multiplier effect. I understand that these factors affect my ability to consume and that ...
anon's user avatar
  • 21
2 votes
0 answers
44 views

Difficulties in translating my equations into R

I have calculated my own Solow model with energy as an input factor. I'm already pretty sure that the equations are correct but the problem I have are the results from the loop I build for the ...
EBger's user avatar
  • 21
1 vote
0 answers
28 views

Current Account deficit but FX appreciating?

When the Current Account (CA) is in deficit it means there is less demand for a currency than supply so it should theoretically depreciate but sometimes this does not hold. When a country with CA ...
Finance_student's user avatar
0 votes
1 answer
34 views

Why don't we use past year gdp for private savings

Trying to understand idea of savings = investments. Private savings formula is (for closed economy): $$S=Y(GDP) - C - T$$ which means "income - private spendings". But households don't spend ...
Vanconts's user avatar
0 votes
0 answers
23 views

Correlation Coefficient of #DIV/0!

I am trying to ask Excel to make a correlation matrix for variables that affect the Chinese exchange rate. However, since I found data with labor cost having a base year (2019), I ended up with lots ...
Nikolai's user avatar
  • 16
1 vote
2 answers
77 views

Where does value originate?

In Austrian economics, the theory of imputation refers to the idea that prices of the factors of production are determined, to a large extent, by the value that consumers perceive the final good or ...
Joebevo's user avatar
  • 403
1 vote
2 answers
84 views

Surplus in the Financial Account - BoP

As a student I am trying to understand the BoP dynamics resulting from a net inflow in the financial account (FA) of a country. Assuming a country has a Current Account (CA) deficit of -50. CASE1: if ...
Finance_student's user avatar
0 votes
0 answers
70 views

Finding the equilibrium interest rate

Let's say there are only two countries in the entire world, Argentina and Chile, and there is free trade between them. The aggregated investments in both countries are $I^A$ and $I^C$ that are both ...
Ari Samueli's user avatar
1 vote
0 answers
53 views

Macroeconomics textbooks

I want a book that has mathematical rigour as well as good explanations for an average student. It is for my master degree. So, something which is not too boring.
Subhodeep Sarkar's user avatar
-1 votes
1 answer
43 views

Wage setting equation

I'm currently doing multiple choice questions and cant figure this question out. I keep getting 1/9 as an answer when its meant to be 10%. Any help would be great. Thanks Suppose that the mark-up of ...
Jack's user avatar
  • 1
5 votes
5 answers
328 views

Macro papers that an undergrad would be able to replicate

I'm writing my bachelor's thesis this spring, and would like to do it by replicating a modern empirical paper in either macro or finance. I've tried to find a paper by skimming through renowned ...
elaia's user avatar
  • 51
1 vote
0 answers
59 views

A Classical Monetary Model (Gali)

In the classical monetary model described by Gali (2008), in chapter 1, on page 28 it is written that: $$ \pi_t=-\frac{\sigma \psi_{y a}\left(1-\rho_a\right)}{\phi_\pi-\rho_a} a_t $$ The author states ...
Right_4ever's user avatar
3 votes
1 answer
105 views

From the Transversality Condition to Initial Consumption

Suppose we have a discrete time neoclassical growth model with CRRA utility where we solve $$\max_{\{c,k\}_{t=0}^{\infty}} \sum_{t=0}^{\infty}\beta^t \frac{c_t^{1-\sigma}-1}{1-\sigma}$$ $$\text{st. } \...
Joseph Basford's user avatar
1 vote
1 answer
90 views

How can the relationship $\frac{\triangle G_t}{Y_t}=\triangle \left(\frac{G_t}{Y_t}\right)$ be established?

The calculation below is from a NBER paper. If $Y_t$ grows at the constant rate $g=r$, then $$ \triangle G_t+\frac{\triangle G_{t+1}}{1+r}+\frac{\triangle G_{t+2}}{(1+r)^2}+\dots$$ can be rewritten as ...
guest's user avatar
  • 280
0 votes
0 answers
32 views

Macroeconomics questions

Hello and Happy new year. Is anyone can help me with macroeconomics questions? (Dynastic Savings and Human Capital). Consider an economy in which parents invest in their children’s human capital. At ...
Hannaneh Jabbari's user avatar
0 votes
0 answers
45 views

Why are branded coffee stores in India as expensive as those in western countries?

When I say branded ones, I am thinking of things like Tim Hortons, Starbucks, and also Indian local brands like Cafe Coffee day, Third wave coffee and so on. One would assume, that since India is a &...
Cathartic Encephalopathy's user avatar
1 vote
0 answers
81 views

From Cobb-Douglas Production Function to Profit Function

A firm's output is given by the Cobb-Douglas production function $$Y_t=X_tK_t^{\alpha_K} L_t^{\alpha_L}$$ where $\alpha_K\approx\frac{1}{3}$ is the capital share and $\alpha_L$ the labor share. ...
Alex's user avatar
  • 333
0 votes
0 answers
26 views

in demand curve tax on buyer shouldnt it be movement along the graph?

if buyer has the burden of tax it shift the demand curve but tax comes under(according to me) in Price of the good so shouldnt it be movement along the graph this is the reasoning in my reading for ...
user45956's user avatar
1 vote
0 answers
30 views

Why are Fed's Tealbooks released with a 5 years lag?

In "On DSGE models", Christiano, Eichenbaum & Trabandt (2018) mentions the "so-called Tealbooks" (p.21). They also say that these Tealbooks are released with a 5-years lag. I ...
krauuuus's user avatar
  • 115
-3 votes
1 answer
130 views

Why economics does not believe in data/empirical evidence?

There are influential ‘theories’ that are in plain contrast to experimental evidence, including the capital asset pricing model, the efficient market hypothesis, or the Markowitz portfolio theory. ...
quanity's user avatar
  • 137
1 vote
1 answer
189 views

Conditional Convergence

Lets assume that we have a theoretical model in this specification to test conditional convergence: \begin{equation} \frac{1}{T} \ln\left(\frac{y_{it}}{y_{it-1}}\right) = a - (1 - e^{-\beta T})\ln(y_{...
kostas2323's user avatar
1 vote
1 answer
124 views

Balanced Growth Path in a 3-Sector Economy

I'm going over a past paper for a macro course I'm taking and have gotten stuck on the last part of one of the questions. Suppose we have a three-sector economy. We are given $B_a,B_s>0$, a ...
Joseph Basford's user avatar
0 votes
1 answer
49 views

Solving an equation for k_t in a modified Solow model

I want to solve my modified solow equation for k_t to get the steady state. But since I also inclueded the marginal product for the price of Energy its pretty difficult for me to find a solution. here ...
Elias Chrostian's user avatar
1 vote
0 answers
72 views

Controlling for Log population with Log GDP per Capita outcome in OLS

Bartlett and Partnoy (BP) (2020) show that OLS with natural log dependent variables that are ratios must include the ln(denominator) on the RHS or they must assume that the numerator and denominator ...
dcoy's user avatar
  • 111
1 vote
0 answers
14 views

Normalization for model comparisons

I have a time series applying the Markov Switching model, which is estimated in about 15 different versions. One or two of the time series had to be normalized in order to converge. That is 1-2 out of ...
David K's user avatar
  • 21
2 votes
2 answers
199 views

Level of Mathematics required to be successful PhD level

I am hoping to study Economics at the graduate level but my current math is lacking. I have Calculus II, Linear Alebra I, Stats 1-3 and Econometrics under my belt. I am to take Linear II, and Calculus ...
Trillsan's user avatar
1 vote
2 answers
319 views

Absolute Convergence

I have noticed that some researchers in order to test convergence hypothesis apply a model in this form: $(1/T) \ln(y_{it}/y_{i,t-1}) = b_0 - b_1\ln(y_{i,t-1}) + u_{it} $ (Barro & Sala-I-Martin, ...
kostas2323's user avatar
0 votes
0 answers
41 views

Why is eurodollar future so popular

It's well-know that eurodollar futures contracts are the most liquid contracts in the world. Traders use them to express views on interest rates or hedge interest rate risks. My questions is why are ...
Taylor Fang's user avatar
0 votes
2 answers
53 views

Meaning of "determines"

In macroeconomics I come across lot of sentences like In the short run, demand determines output. In the short run, the central bank determines the interest rate. In the short run, output is ...
quanity's user avatar
  • 137
0 votes
0 answers
45 views

If Milei is able to apply his economic plan during the next decade, what are the chances of Argentina becoming (once again) a major economy?

Once Argentina was one of the strongest economies in South America. It is pretty clear that the economic model that made Argentina successful then does not stand a big chance to work again. Javier ...
Hvjurthuk's user avatar
  • 101
1 vote
0 answers
27 views

Good tutorial on constrained optimization with state switching (macroeconomics)?

I am looking for some tutorial (website, book, video or even answer that explains it directly) that explains how to solve dynamic constrained optimization problem with state switching. Preferably the ...
Lorenzo Pozzi's user avatar
1 vote
0 answers
96 views

how to derive that golden rule steady state = alpha in the solow model?

I have successfully derived the Golden Rule steady state for capital, but I'm struggling to derive the saving rate = equal to alpha (α) for the Golden Rule level. Have I made an error in my ...
Mackenzie Watts's user avatar
1 vote
1 answer
31 views

What is the meaning of "Nominal GDP was converted to 2021 dollars using the GDP Price Index" in ERP 2023?

Reading the Economic Report of The President 2023, there is a note under the real GDP graph stating: "Nominal GDP was converted to 2021 dollars using the GDP Price Index" What I understand ...
Omar's user avatar
  • 13
1 vote
0 answers
68 views

What is a very very famous example of structural estimation?

I took a behavioral econ class and learnt the "structural estimation" of risk-aversion parameter. Later some friends told me that what I learnt is too simple when I was bragging about my ...
dodo's user avatar
  • 297
1 vote
0 answers
57 views

Durable goods in a (two sector) necolassical growth model

i want to add a firm to a neoclassical growth model that produces a durable good which it rents out in each period to the consumers. Right now i'm using the following approach: The firm maximizes: $\...
mfba's user avatar
  • 11
0 votes
0 answers
23 views

Why cant other country Imitate China give people work in place of relief subsidies? especially country with low-employment rate?

From my shallow perspective as a Chinese, whenever there is a low economic growth rate, there is a massive infrastructure building plan as to give people work in place of relief subsidies to stimulate ...
Tong Su's user avatar
0 votes
1 answer
41 views

What is the difference between "The effects of Monetary Policy" and "The effects of Monetary Policy Shock"?

I know this may be a silly question. I always thought these were different but some people in the literature use them interchangeably and I was wondering are they different? If so, how are they ...
EHMJ's user avatar
  • 167
0 votes
0 answers
25 views

"If the aggregate supply is linear, demand shocks cannot affect average unemployment", what does it mean?

Aggregate Supply: $\pi_t =\pi_{t-1} -\alpha(u_t -\bar{u})+e_t^S$ Welfare: $W_t =-cu_t -f(\pi_t ), c>0, f''(\cdot)>0$ $\bar{u}$: natural unemployment rate $e_t^S$: supply shock In Romer's ...
newcomer's user avatar
0 votes
1 answer
82 views

Does anybody know why the Fed Funds Effective Rate has 3 evenly spaced dips in between every FOMC meeting, that suddenly stop on March 21st 2018?

In general the effective rate was much more volatile the further back you go, but now it is perfectly straight, what has changed? The fact that it is exactly three evenly spaced dips of 8-10 basis ...
himothy's user avatar
0 votes
0 answers
22 views

What are the ways to take account of inflation?

If one wants to analyze the influence of inflation on other macro economic indicators, what are the best/standard way of how to use it? I've found 3 variants: As is (yearly values). To take ...
Andrew's user avatar
  • 133
0 votes
0 answers
87 views

Advanced Macroeconomics David Romer Chapter 10

I am currently reading David Romer's Advanced Macroeconomics for self study. Could someone please kindly explain to me how to derive (10.21) from chapter 10 in more detail than the textbook?
William's user avatar
0 votes
1 answer
58 views

Calculation of simple elasticity problem

I'm reading Advanced Macroeconomics by Romer and having trouble to understand very simple calculation provided in just one sentence. Define real money market equilibrium condition as $(\frac{M}{P})^s=...
postasguest's user avatar
0 votes
1 answer
62 views

For my bachelors, would it make sense to use C+G (as Consumption + Government Expenditure) as an indicator for the prosperity of the economy?

Because G is also really just consumed by the people, wouldn´t it make sense to measure all the things that people consume to measure the prosperity of an economy? At the end of the day, people in an ...
Matsvei Voltau's user avatar

1 2
3
4 5
61